- The stock price of FREYR Battery (NYSE: FREY) increased by over 2% during intraday trading today. This is why it happened.
The stock price of FREYR Battery (NYSE: FREY) – a developer of clean and next-generation battery cell production capacity – increased by over 2% during intraday trading today. Investors are responding positively to FREYR Battery announcing the formation of a joint venture in the United States between Koch Strategic Platforms (KSP) and FREYR.
The JV – which has a 50%/50% ownership structure – has been established to develop an initial 50 GWh of Gigafactory-scale battery cell manufacturing capacity in the U.S. based on 24M Technologies SemiSolid platform technology. And the scale and scope of the targeted development would position the JV as one of the largest battery cell manufacturers in the U.S., using American-borne technology and the sustainable innovation of a premier U.S.-based, global industrial partner in KSP. This venture further progresses FREYR’s strategic focus of developing clean and localized battery cell production and supply chains to catalyze emerging energy technology adoption.
In connection with the agreement, KSP and FREYR have invested $70 million in convertible promissory notes with 24M, under which KSP and FREYR will initially invest $50 million and $20 million, respectively. And upon closing of the convertible note financing, the JV entered into a new licensing agreement with 24M that will enable the JV to deploy 24M’s SemiSolid platform technology with conditional limited exclusivity in the U.S.
The JV will leverage 24M’s SemiSolid technology, which dramatically reduces the number of steps required to manufacture battery cells while still using conventional lithium-ion raw materials. And the SemiSolid production platform enables capital and operating cost savings as well as expanded opportunities to recycle materials. Using the 24M technology platform, the JV will have the flexibility to provide next-generation batteries of various sizes and chemistries at a commercial scale.
“Today’s announcement marks a significant milestone for FREYR as we advance our expansion strategy through the U.S. joint venture with KSP. Our entire team is looking forward to collaborating with our U.S.-based strategic partners at Koch and 24M to bring clean, next-generation battery cell production to the U.S. at commercial scale.”
— Torstein Sjøtveit, FREYR’s Executive Chairman
“We are pleased to announce the formation of the joint venture with FREYR and our investment in U.S.-based 24M. This initiative could create jobs here in the U.S. and foster continued adoption of transformative energy technology.”
— David Park, president of Koch Strategic Platforms
“KSP conducted diligence on the FREYR investment beginning in January 2021 when we participated as the largest investor in their PIPE offering. We are confident in the prospects of signing significant commercial offtake agreements in both the energy storage and EV sectors that will enable us to select a Gigafactory location in the U.S. next year.”
— Jeremy Bezdek, managing director of KSP and FREYR board director
“We are delighted to enhance our deep strategic partnership with FREYR and establish a new collaboration with a globally-respected industrial player in Koch. The investment in 24M and expanded licensing agreement validate our battery technology leadership and offer potential deployment at commercial scale in the U.S.”
— Naoki Ota, President and CEO of 24M
“The establishment of the U.S. JV with KSP and the associated investment in 24M are transformational developments for FREYR. These agreements increasingly position FREYR as a leader in modularized production of next-generation battery cells at scale. We are now taking formal steps to offer localized battery supply complementing our initial Norwegian offering to the exponentially growing U.S. market. We are very excited to deepen our key strategic relationships with Koch and 24M as we accelerate our work to establish a substantial commercial production footprint in the U.S.”
— Tom Jensen, FREYR’s Chief Executive Officer
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